Author: David Knapp
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
Book Description
Many school districts have used or are considering the use of voluntary retirement incentives. The intent of these incentives is to decrease the payroll cost of their workforce, decrease retirement fund liability, decrease workforce size without layoffs, or a combination of these outcomes. At the end of the 2017 school year, Chicago Public Schools offered a one-time, unanticipated retirement incentive for the purpose of reducing its cost by shifting from the employment of retirement-eligible to new teachers; the latter group is paid 70 percent of the senior teacher's salary. It offered $1,500 per year of service of non-pensionable income for teachers who agreed to retire immediately. We use a dynamic model of teacher retention behavior to predict the number of teachers willing to accept this voluntary retirement incentive and retire. The model is estimated using individual-level data on entry cohorts of Chicago teachers from 1979-2000, which are the cohorts affected by the retirement incentive. Our model predicts that only 588 of the 2,700 teachers eligible for the benefit will retire. Our research reveals two important dimensions to consider in retirement incentive design. First, a voluntary retirement incentive results in substantial economic rents: payments to individuals who would have retired without the incentive. For Chicago's incentive, this would amount to 73% of payments. Second, if the incentive appeals to individuals closest to indifference between continuing to teach and retiring, those who are incentivized to retire would have likely retired within a few years without the incentive. In the case of Chicago, if they replace all teachers that are incentivized to retire, we find negative cost savings over the next six years. If not all retiring teachers are replaced, the cost savings could be positive.
Exploring Voluntary Retirement Incentives for Teachers
Author: David Knapp
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
Book Description
Many school districts have used or are considering the use of voluntary retirement incentives. The intent of these incentives is to decrease the payroll cost of their workforce, decrease retirement fund liability, decrease workforce size without layoffs, or a combination of these outcomes. At the end of the 2017 school year, Chicago Public Schools offered a one-time, unanticipated retirement incentive for the purpose of reducing its cost by shifting from the employment of retirement-eligible to new teachers; the latter group is paid 70 percent of the senior teacher's salary. It offered $1,500 per year of service of non-pensionable income for teachers who agreed to retire immediately. We use a dynamic model of teacher retention behavior to predict the number of teachers willing to accept this voluntary retirement incentive and retire. The model is estimated using individual-level data on entry cohorts of Chicago teachers from 1979-2000, which are the cohorts affected by the retirement incentive. Our model predicts that only 588 of the 2,700 teachers eligible for the benefit will retire. Our research reveals two important dimensions to consider in retirement incentive design. First, a voluntary retirement incentive results in substantial economic rents: payments to individuals who would have retired without the incentive. For Chicago's incentive, this would amount to 73% of payments. Second, if the incentive appeals to individuals closest to indifference between continuing to teach and retiring, those who are incentivized to retire would have likely retired within a few years without the incentive. In the case of Chicago, if they replace all teachers that are incentivized to retire, we find negative cost savings over the next six years. If not all retiring teachers are replaced, the cost savings could be positive.
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
Book Description
Many school districts have used or are considering the use of voluntary retirement incentives. The intent of these incentives is to decrease the payroll cost of their workforce, decrease retirement fund liability, decrease workforce size without layoffs, or a combination of these outcomes. At the end of the 2017 school year, Chicago Public Schools offered a one-time, unanticipated retirement incentive for the purpose of reducing its cost by shifting from the employment of retirement-eligible to new teachers; the latter group is paid 70 percent of the senior teacher's salary. It offered $1,500 per year of service of non-pensionable income for teachers who agreed to retire immediately. We use a dynamic model of teacher retention behavior to predict the number of teachers willing to accept this voluntary retirement incentive and retire. The model is estimated using individual-level data on entry cohorts of Chicago teachers from 1979-2000, which are the cohorts affected by the retirement incentive. Our model predicts that only 588 of the 2,700 teachers eligible for the benefit will retire. Our research reveals two important dimensions to consider in retirement incentive design. First, a voluntary retirement incentive results in substantial economic rents: payments to individuals who would have retired without the incentive. For Chicago's incentive, this would amount to 73% of payments. Second, if the incentive appeals to individuals closest to indifference between continuing to teach and retiring, those who are incentivized to retire would have likely retired within a few years without the incentive. In the case of Chicago, if they replace all teachers that are incentivized to retire, we find negative cost savings over the next six years. If not all retiring teachers are replaced, the cost savings could be positive.
Graying Teachers
Author: Frank V. Auriemma
Publisher: University of Oregon ERIC Clearinghouse on Educational Management
ISBN:
Category : Business & Economics
Languages : en
Pages : 116
Book Description
Nearly a million teachers will reach retirement age in the next 9 to 11 years. This report presents a complete state-by-state overview of the retirement programs available to America's teachers. Chapter 1 presents the issues of teacher aging, retirement, and early retirement and asks how school districts might effectively manage the retirement and replacement of teachers. Chapter 2 surveys retirement plans in the 50 states and provides information on how to calculate a teacher's pension, with relevant data by state. Chapter 3 looks at local and state programs to entice teachers to retire early. Empirical methods are used to assess the effectiveness of various plans. Case studies of early retirement incentive plans in six districts show how these plans work. Based on conclusions drawn from these data, school officials are advised on how to create, implement, and evaluate an early retirement program. Chapter 4 calls for a national task force on teacher retirement and argues that the future of the teacher retirement system depends on resolving six related issues: (1) threatened financial viability; (2) lack of consistency between local and state policies; (3) lack of portability of plans; (4) lack of system flexibility in investment and withdrawal of funds for teachers; (5) lack of control by teachers as individuals and as a group; and (6) lack of equity among teachers in various districts. (21 tables, 48 references) (MLF)
Publisher: University of Oregon ERIC Clearinghouse on Educational Management
ISBN:
Category : Business & Economics
Languages : en
Pages : 116
Book Description
Nearly a million teachers will reach retirement age in the next 9 to 11 years. This report presents a complete state-by-state overview of the retirement programs available to America's teachers. Chapter 1 presents the issues of teacher aging, retirement, and early retirement and asks how school districts might effectively manage the retirement and replacement of teachers. Chapter 2 surveys retirement plans in the 50 states and provides information on how to calculate a teacher's pension, with relevant data by state. Chapter 3 looks at local and state programs to entice teachers to retire early. Empirical methods are used to assess the effectiveness of various plans. Case studies of early retirement incentive plans in six districts show how these plans work. Based on conclusions drawn from these data, school officials are advised on how to create, implement, and evaluate an early retirement program. Chapter 4 calls for a national task force on teacher retirement and argues that the future of the teacher retirement system depends on resolving six related issues: (1) threatened financial viability; (2) lack of consistency between local and state policies; (3) lack of portability of plans; (4) lack of system flexibility in investment and withdrawal of funds for teachers; (5) lack of control by teachers as individuals and as a group; and (6) lack of equity among teachers in various districts. (21 tables, 48 references) (MLF)
Proposed Legislation on Age-based Faculty Retirement Incentives
Author: David L. Raish
Publisher:
ISBN:
Category : College teachers
Languages : en
Pages : 44
Book Description
Publisher:
ISBN:
Category : College teachers
Languages : en
Pages : 44
Book Description
Early Retirement Incentive Programs for Teachers
Author: Martha M. McCarthy
Publisher:
ISBN:
Category : Early retirement
Languages : en
Pages : 30
Book Description
Publisher:
ISBN:
Category : Early retirement
Languages : en
Pages : 30
Book Description
Benefits of the New York State Teachers Retirement System
Author: New York State Teachers' Retirement Board
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 40
Book Description
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 40
Book Description
State Teachers' Retirement System Cost Analysis Report
Author:
Publisher:
ISBN:
Category : Early retirement incentives
Languages : en
Pages :
Book Description
Publisher:
ISBN:
Category : Early retirement incentives
Languages : en
Pages :
Book Description
Incentive Early Retirement Programs for Faculty
Author: Jay L. Chronister
Publisher:
ISBN:
Category : College teachers
Languages : en
Pages : 104
Book Description
Publisher:
ISBN:
Category : College teachers
Languages : en
Pages : 104
Book Description
Early Retirement Incentive Plans in California School Districts
Author: Frances Bell Ridley
Publisher:
ISBN:
Category : Early retirement incentives
Languages : en
Pages : 286
Book Description
Publisher:
ISBN:
Category : Early retirement incentives
Languages : en
Pages : 286
Book Description
Public School Teachers' Retirement Systems in the United States
Author: Alliance of New Jersey Women Teachers
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 146
Book Description
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 146
Book Description
Early Retirement Incentive Plans in New York State
Author: Ronda Levin Gersten
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 266
Book Description
Publisher:
ISBN:
Category : Teachers
Languages : en
Pages : 266
Book Description